CONTRACT ADMINISTRATION MANUAL - Texas...

CONTRACT ADMINISTRATION MANUAL NOVEMBER 2015

FY2016 Contract Handbook Institutional Compliance

“Integrity at Work”

INTRODUCTION

The offices of General Counsel, Institutional Compliance, and Procurement Services are

pleased to provide the TSU family with the FY2016 Contract Administration Guide – a

companion guide to University MAPP 08.04.01 – Contract Administration Policy . This

guide provides checklists, standard forms, and flowcharts to make the TSU contracting

process easier. This guide contains basic contracting information to assist you in the

processing and review of your contracts / agreements.

If you have any questions or comments about this manual, please contact the Office of

Institutional Compliance at x6823.

http://www.tsu.edu/mapp/pdf/general-counsel/080401-contract-administration-001.pdf



TABLE OF CONTENTS

Introduction……………………………………………………………………......……….. 2

Table of Contents………………………………………………………….........………….. 3

Glossary………….....………………………………….……………………...……………… 4

Legal Review of Contracts and Agreements……………………………………………. 8

State Contracting Requirements ….……………………………......……………………... 9

TSU’s Process.……………….………………………..……………...……………………… 13

A. Contracts for Goods and Services

B. Affiliation Agreements and Memorandums of Understanding

C. Step-by-Step Flow Chart

D. Contract Management

Checklist………………………………………………..…………………….……………… 24

A. Contract Checklist

B. Consulting Contract Checklist

Appendix….…………………………………………………………………………………. 30

A. Forms / Standard Agreements

B. Professional / Consultant Services Information

C. Quick Reference Guide

Contract Administration Contacts……………………………………………..……..….. 44



GLOSSARY

A. Affiliation Agreement. Defines the terms of service between the advertiser and the

affiliate, which defines and governs the affiliate relationship. The affiliation

agreement will specify the responsibilities of both parties, payout terms and

commission for conversions, if necessary.

B. Amendment. The process of formally altering or adding to a document or record.

C. Board. Texas Southern University’s Board of Regents.

D. Breach. A violation or infraction, as of a law, a legal obligation, or a promise.

E. Compliance Cover Sheet. A form containing details and acknowledgments of

responsibility related to a contract request submitted for review and approval. The

Compliance Cover Sheet can be obtained from the University’s website.

F. Consultant. A person that provides or proposes to provide a consulting service. The

term includes a political subdivision, but does not include the federal government, a

state agency or a state governmental entity (Texas Government Code §2254.021(3)).

G. Consulting Service. The service of studying or advising a state agency under a

contract that does not involve the traditional relationship of employer and employee

(Texas Government Code §2254.021(1)). To “study” means to consider some aspect

of the agency in detail, such as its financial status or its method of performing an

administrative function, and to present that information to the agency. To “advise”

means to provide a recommendation or identify options with respect to some course

of action. Generally, a “consultant” delivers information or provides assistance that

enables the state agency to take some course of action. When a contract involves both

Consulting Services and other services, it is considered a consulting contract if

Consulting Services are the primary objective of the contract (Texas Government

Code §2254.038). Questions about whether a particular contract involves Consulting

Services should be directed to the Purchasing Department or the Office of General

Counsel (“OGC”).

H. Contract or Agreement. An agreement between two or more parties that creates in

each party an obligation to do or refrain from doing something and a remedy for

such party’s failure to fulfill the obligation. References to “contracts” or

“agreements” include, but are not limited to, agreements, terms and conditions,

amendments, letters of agreement, letters of intent, statements of intent, memoranda



of understanding, leases, inter-local agreements, interagency agreements and any

other contract-related documents.

I. Due Diligence. The degree of care that a prudent person would exercise prior to

entering into a transaction.

Here at Texas Southern University, the review process involves performing various

investigative searches including, but not limited to, reviewing:

The vendor’s organizational chart to identify any conflicts of interest for

TSU;

Dun and Bradstreet information for financial assessment;

Centralized master bidders listing for debarred vendors; Excluded party

listing to confirm vendor’s eligibility to receive federally funded

contracts;

Historically Underutilized Business (HUB) status; and

Texas Comptrollers of Public Accounts to verify vendor hold status and

to determine if the business is in good standing with the state of Texas.

J. Extension. An allowance of extra time.

K. Historically Underutilized Business (HUB). A corporation, sole proprietorship,

partnership, or joint venture, with a principal place of business in this state, which

at least is fifty-one (51%) percent owned, controlled, operated, and actively managed

by one or more persons who have been economically disadvantaged because of their

membership in a certain group, including Black American, Hispanic Americans,

women, Asian Pacific Americans, and Native Americans, and who have suffered the

effects of discriminatory practices or other similar insidious circumstances over

which the person has no control.( See Government Code §2161.001).

L. Initiating Department. The university department or representative that initiates a

contract request and/or otherwise has responsibility for such contract.

M. Interagency. Involving or representing two or more agencies, especially government

agencies.



N. Late Payment. A payment that is distributed to a vendor after the due date.

O. Lease. A contract by which one conveys real estate, equipment, or facilities for a

specified term and for a specified rent

P. License. A legal document granted by competent authority giving official permission

to engage in a business, occupation, or activity.

Q. Master Agreements. Allow requisitioning departments to purchase commodities

without requesting competitive bids from other vendors. The “best value” process

has already occurred through the RFP process or group purchasing programs;

therefore, individual purchases may not require further bidding.

R. Memorandum of Agreement (MOA). A document written between parties to

cooperatively work together on an agreed upon project or meet an agreed objective.

The purpose of an MOA is to have a written understanding of the agreement

between parties.

S. Memorandum of Understanding (MOU). A document describing a bilateral or

multilateral agreement between parties. It expresses a convergence of will between

the parties, indicating an intended common line of action.

T. Modification. A small alteration, adjustment, or limitation.

U. OGC. Texas Southern University’s Office of General Counsel.

V. President’s Delegations of Authority. A summary of delegations of authority made

by President and available on the University’s website.

W. Professional Services. Services directly related to the professional licensed practices

such as accounting, architecture, landscape architecture, land surveying, medicine,

optometry, professional engineering, real estate appraising, or professional nursing

(Texas Government Code §2254.002(2)). Services provided by professionals outside

the scope of their profession, (e.g., management-consulting services provided by

accounting firms,) are not considered Professional Services for purposes of this

policy.

X. Purchase Order. Written authorization for a supplier to ship products at a specified

price, which becomes a legally binding contract once the supplier accepts it.

http://www.businessdictionary.com/definition/authorization.html

http://www.investorwords.com/4821/supplier.html

http://www.investorwords.com/3874/product.html

http://www.investorwords.com/3807/price.html

http://www.investorwords.com/1079/contract.html

http://www.investorwords.com/37/accept.html



Y. Sponsored Research. Includes research and development projects that usually

involve the preparation of specialized contracts such as grants, sub-recipient

agreements or sub-contract agreements with other entities.

Z. Standard Form Agreement. Contracts and other documents that have been

previously reviewed and approved by the Office of General Counsel for proper form

and legality, including compliance with applicable state laws, constitutional

requirements and Board and System policies.

AA. Substantive Change. A change that modifies the legal terms of a particular

document. Any substantive change to a standard form agreement will render it non-

standard. Examples of substantive changes include modifications to: party names,

description of goods or services, dollar amount to be paid or received, effective date

and term length. Questions about whether a particular modification constitutes a

substantive change should be directed to the Office of General Counsel.

BB. University. Texas Southern University.



LEGAL REVIEW OF CONTRACTS AND AGREEMENTS

Texas Southern University is committed to executing contracts in compliance with applicable

federal and state laws, regulations, and agency advisory opinions, judicial and administrative

determinations. All contracts must be submitted to the OGC before execution for review and

approval as to legal form and sufficiency. If the vendor provides a contract form, attach the

University’s standard clause addendum form before submitting to the OGC.

For contracts for goods and services, prior to submitting the primary contract to the OGC for

review, the compliance coversheet must be signed by Procurement Services (to determine if the

proper bids were acquired, if necessary); the Office of Institutional Compliance (to perform due

diligence, if required); and the Chief Financial Officer (to confirm the availability of funds).

NOTE: For Academics, all contracts must first be submitted to the Provost’s Office of Business

Services prior to submitting to Procurement Services.

All applicable administrative and legal reviews must be completed prior to execution of a

contract and prior to commencement of any duties/actions by the parties pursuant to the

contract. Once the contract is fully-executed, a legible copy of the executed contract must be

submitted to the Office of General Counsel.



STATE CONTRACTING REQUIREMENTS

Any Texas Southern University contract should always be governed by the laws of the State of

Texas. Texas law contains many provisions which protect the State and state institutions of

higher education.

1. Confidentiality Clauses: Texas Southern University is subject to the Texas Public

Information Act. Chapter 552 of the Texas Government Code. Texas Southern cannot

keep information confidential if it is subject to disclosure under the Texas Public

Information Act. Therefore, any clauses in contracts which require the University to

maintain information as confidential must either be deleted or qualified with “to the

extent permitted by the Texas Public Information Act” or similar language.

2. Indemnification: Indemnity and hold harmless provisions are very important and must

be reviewed carefully. A provision in a contract to indemnify or hold a party harmless is

a promise to pay for any expenses the indemnified party incurs, if a specified event

occurs, such as breaching the terms of the contract or negligently performing duties

under the contract. Article III, Section 49 of the Texas Constitution states that “no debt

shall be created by or on behalf of the State . . . .” The Attorney General has counseled

that a contractually imposed obligation of indemnity creates a “debt” in the

constitutional sense. Tex. Att’y Gen. Op. No. MW-475 (1982). Contract clauses which

require the System or the Institutions to indemnify must be deleted or qualified with “to

the extent permitted by the Constitution and laws of the State of Texas.” Liquidated

damages, attorney’s fees, waiver of vendor’s liability, and waiver of statutes of

limitations clauses should also be deleted or qualified with “to the extent permitted by

the Constitution and laws of State of Texas.”

3. Insurance: The University should carefully review any clauses in its contracts which

require it to maintain insurance and ensure that the clauses accurately reflect levels of

coverage. Below is a brief explanation of some common insurance requirements.

a. General Liability Insurance: It is the stated policy of the State of Texas not to

acquire commercial general liability insurance for torts committed by employees

of the State who are acting within the scope of their employment. Rather, third

parties must look to the Texas Tort Claims Act for relief with respect to property

damage, personal injury, and death proximately caused by the wrongful act or

omission or negligence of an employee acting within his scope of employment.



b. One exception to the above stated policy of the state authorizes agencies and

state institutions of higher education to acquire commercial automobile

insurance for the use and benefit of their employees who operate state-owned

motorized vehicles and special equipment.

c. Workers’ Compensation Insurance: TSU employees are provided Workers’

Compensation coverage under the provisions of the Workers' Compensation Act

for Texas State employees.

4. Payment and Interest on Late Payments: Chapter 2251(Prompt Payment Law) of the

Texas Government Code provides for interest on late payments to vendors. Contracts

which require Texas Southern to pay interest on late payments should be modified so

that any interest payment will be in accordance with Chapter 2251.025(b) of the Texas

Government Code which states the rate in effect on September 1 is equal to the sum of:

(1) one percent; and (2) the prime rate as published in the Wall Street Journal on the first

day of July of the preceding fiscal year that does not fall on a Saturday or Sunday.

5. Breach of Contract Claims: Chapter 2260 of the Texas Government Code establishes a

dispute resolution process for contracts with entities of the State of Texas involving

goods, services and certain types of projects. This statute was intended to be of benefit to

parties contracting with an entity of the State of Texas. This statute requires that a state

entity must give vendors notification of the dispute resolution process and its

applicability to state contracts. Any arbitration or mediation provisions contained in

contracts should be deleted and replaced with the dispute resolution clause contained in

the Standard Addendum. Texas Southern should not enter into contracts which contain

an arbitration provision as it could waive protections provided by state law.

6. Non-Appropriations Clause: If Texas Southern is a party to a contract and the term of

the contract extends beyond the expiration of the current appropriations term that is in

effect when the contract is entered into, the contract must contain a provision that

specifically conditions the TSU’s financial obligations under the contract on the

availability of sufficient appropriations. This is necessary to avoid the creation of an

unconstitutional debt.

7. Franchise Tax Certification: Section 2107.008 of the Texas Government Code does not

permit Texas Southern to pay a vendor who is delinquent in paying State of Texas

franchise taxes. TSU must determine whether a vendor is delinquent, and the

certification in the standard addendum helps with compliance with Section 2107.008.



8. Payment of Debts to State of Texas: Sections 2107.008 and 2252.903 of the Texas

Government Code only require state institutions to include this clause in contracts with

persons whom the state comptroller has determined are in debt to the state or

delinquent in the payment of taxes. The clause in the standard addendum requires

vendors to acknowledge that if they are in debt to the state, payments they are owed

under the contract will first be applied to pay off their debt.

Child Support Certification: Section 231.006 of the Texas Family Code requires

certain vendors who do business with the state to certify that they are not

delinquent in the payment of child support.

9. Certain Bids Prohibited: Section 2155.004 of the Texas Government Code states that a

state agency may not accept a bid or award a contract that includes proposed financial

participation by a person who received compensation from the agency to participate in

preparing the specifications or request for proposals on which the bid or contract is

based.

10. Limitation of Time in Which to Bring Legal Action or Claim: Section 16.070 of the

Texas Civil Practice & Remedies Code states that any stipulation or agreement that

attempts establish a limitations period shorter than two years is void.

11. Historically Underutilized Businesses (HUBS): A "Historically Underutilized

Business"...

...is at least 51% owned by an Asian Pacific American, Black American, Hispanic

American, Native American and/or American woman,

..is an entity with its principal place of business in Texas, and

...has an owner residing in Texas with a proportionate interest that actively

participates in the control, operations and management of the entity's affairs.

In accordance with Texas Administrative Code §20.13, each state agency shall make a

good faith effort to utilize HUBs in contracts for construction, services (including

professional and consulting services) and commodities purchases. It is the policy of the

commission to encourage the use of historically underutilized businesses (HUBs) by

state agencies and to assist agencies in the implementation of this policy through race,

ethnic, and gender-neutral means. The purpose of this program is to promote full and

equal business opportunities for all businesses in state contracting in accordance with

the goals specified in the State of Texas Disparity Study.



Each state agency shall make a good faith effort to assist HUBs in receiving a portion of

the total contract value of all contracts that the agency expects to award in a fiscal year in

accordance with the following percentages:

11.2% for heavy construction other than building contracts;

21.1% for all building construction, including general contractors and

operative builders contracts;

32.9% for all special trade construction contracts;

23.7% for professional services contracts;

26% for all other services contracts; and

21.1% for commodities contracts.

12. Conflict of Interest. In accordance with Texas Government Code, Subchapter C,

Standards of Conduct and Conflicts of Interest (Section 572), a State employee should

not accept other employment or compensation that could reasonably be expected to

impair the employee’s independence of judgment in the performance of the employee’s

official duties.

In regards to gifts, any item(s) received valued at $250 or more shall be disclosed to the

employees’ respective supervisors. The President shall make such disclosures to the

Board of Regents. Employees may accept benefits from personal friends, relatives, or

business associates with whom they have a relationship independent of their official

status, so long as the benefit is not offered in exchange for official action or decision.

If a concern related to conflict of interest exists, notify the Office of Compliance or the

Office of Internal Audit for appropriate guidance. (See MAPP 02.05.05)

13. Contracts with Other Institutions: The Board may make proper arrangements by

contract with other educational institutions, hospitals, and clinics in Houston for the use

of any facilities and services it considers necessary and expedient for the proper training

and education of students in professional courses.

14. Interagency Contracts for Networks: Any institution of higher education may enter into

an interagency contract with one or more other institutions of higher education for the

establishment and operation of a telecommunications network for the transmission of

audio or video signals or electronic data, but only to the extent that the

telecommunications services are not available through a system of telecommunications

services established for state agencies generally. Each of those interagency contracts

shall be reviewed by the Texas Higher Education Coordinating Board.

http://www.tsu.edu/PDFFiles/Admin/MAPP/Human%20Resources/02%2005%2005%20Ethics%20Cnfl%20Int_001.pdf



TSU’s PROCESS CONTRACTS FOR GOODS AND SERVICES

A. After the completion of the solicitation process with the Office of Procurement Services (if

required), the Contract Originator / Initiating Department should begin drafting the

contract or use a University standard contract form. If you need assistance with drafting

your contract / agreement, please contact the Office of General Counsel. Note: TSU

requires a contract for all consulting, professional or other services, regardless of the

contract amount.

B. Upon completion of the contract, the Initiating Department / Contract Originator shall

obtain the vendor’s signature on the contract document. Note: If the vendor refuses to

sign, please note this on the Compliance Coversheet.

C. For all contracts / agreements for goods and services, the Initiating Department / Contract

Originator must complete the Compliance Coversheet in its entirety, attaching supporting

documentation, if necessary (e.g., OIT signoff, Board Agenda Item Checklist (if over $100K),

etc.). Any incomplete forms will be returned to the Initiating Department / Contract

Originator.

D. Upon completion of the Compliance Coversheet, the Initiating Department / Contract

Originator should forward the contract (signed by the vendor), the Compliance Coversheet,

and supporting documentation to their Senior Vice President or Official with Delegated

Authority for their respective area for signature approval. NOTE: For Academics, all

contracts should be sent to the Provost’s Business Service Office.

E. Upon obtaining the signature of the Senior Vice President / Official with Delegated

Authority for the respective area, the Initiating Department / Contract Originator shall

forward the contract / agreement (signed by the vendor), the Compliance Coversheet and

the appropriate attachments to Procurement Services.

F. Procurement Services will review all documents to ensure that the vendor’s signature is

present as well as to determine if we are in compliance with state bidding requirements.

After its review, Procurement Services will forward the contract / agreement and supporting

documents to the Office of Institutional Compliance for a “due diligence review.”

G. The Office of Institutional Compliance will then forward the contract / agreement, results of

its due diligence review (if necessary), and any other supporting documents to the Division

of Finance.



H. The Division of Finance determines if the appropriate funding is available for the

purchase. If the Division of Finance determines that the funding source is from a grant

or other sponsored program, they will forward the contract / agreement and supporting

documents to Research Financial Services to determine the availability of funds. If it is

determined that funds are not available, Finance / Research Financial Services will

contact the Initiating Department / Contract Originator and return all documents. If

adequate funds are available, Finance / Research Financial Services will submit the

contract/agreement and supporting documentation to the Office of General Counsel.

I. General Counsel assigns a contract number and reviews the contract / agreement for

legal form and sufficiency. If the contract is legally sufficient, the OGC will forward the

contract / agreement with an “execution letter” to the appropriate Senior Official with

signature authority (Please see the President’s Delegation of Authority). If any updates

or changes are needed, the OGC will contact the Initiating Department / Contract

Originator so that he/she can make the appropriate changes/updates. Upon final

approval by the Office of General Counsel, the agreement and execution letter is

forwarded to the Senior Official with signature authority. NOTE: Any changes /

additions / deletions after General Counsel’s review must be resubmitted to the Office of

General Counsel for final approval.

J. Pursuant to the University’s Contract Administration Policy, the Office of General

Counsel must maintain a record of all University Contracts. Therefore, upon execution

of the agreement / contract (when both parties have signed the agreement), the

respective Senior Vice President signing the agreement shall forward a copy (preferably

electronically) of the executed agreement to the Office of General Counsel and the

original contract should be forward to the Initiating Department / Contract Originator

The original contract should be retained according to the University’s Record

Management Policy.

K. The Initiating Department / Contract Originator must execute the signed contract within

90 days from the completion of the review. If execution is not completed within 90 days,

the Initiating Department must resubmit the document for review.

L. Upon the completion of the vendor performance (within 10 days), the Initiating

Department / Contract Originator is responsible for completing the Vendor Performance

Form. Reporting of vendor performance is mandated by the Texas Government Code

Sec. 20.108 and is required for purchases over $25,000 (with certain exemptions). The

Office of Institutional Compliance will submit a copy of the required form to you during

the contracting process (and the form may also be found on TSU Forms). This form is

http://www.tsu.edu/about/office-of-the-president/pdf/delegation-of-authority.pdf



important so that TSU and other state entities can evaluate vendor performance to

reduce risk in the contract award process.

Please note: The Initiating Department will be contacted directly during the review, if any

questions or issues arise. This process should take approximately 5-10 business days.



AFFILIATION AGREEMENTS & MEMORANDUMS OF UNDERSTANDING /

AGREEMENTS WITH NO MONETARY VALUE

A. For all affiliation agreements or memorandums of understanding / agreements with no

monetary value, the Initiating Department / Contract Originator completes the Compliance

Coversheet in its entirety, attaching all applicable justification forms. Any incomplete forms

will be returned.

B. The Initiating Department / Contract Originator then forwards the signed (signed by the

vendor) agreement / memorandum, the Compliance Coversheet and the appropriate

attachments to the Office of General Counsel. NOTE: For Academics, all contracts must be

submitted to the Provost’s Business Services Office for approval.

C. General Counsel assigns a contract number, reviews the contract / agreement for legal form

and sufficiency. If the contract is sufficient, OGC will forward the contract / agreement with

an “execution letter” to the appropriate Senior Official with signature authority (Please see

the President’s Delegation of Authority). If any updates or changes are needed, OGC will

contact the Initiating Department / Contract Originator so that he or she can make the

appropriate changes/updates. Upon final approval by the Office of General Counsel, the

agreement and execution letter is forwarded to the Senior Official with signature authority.

NOTE: Any changes/additions/deletions after General Counsel’s review must be

resubmitted to the Office of General Counsel for final approval.

D. Pursuant to the University’s Contract Administration Policy, the Office of General Counsel

must maintain a record of all University Contracts. Therefore, upon execution of the

agreement / contract (when both parties have signed the agreement), the respective Senior

Vice President signing the agreement shall forward a copy (preferably electronically) of the

executed agreement to the Office of General Counsel and the original contract should be

forward to the Initiating Department / Contract Originator The original contract should be

retained according to the University’s Record Management Policy.

E. The Initiating Department / Contract Originator must execute the signed contract within 90

days from the completion of the review. If execution is not completed within 90 days, the

Initiating Department must resubmit the document for review.

F. Upon the completion of the vendor performance (within 10 days), the Initiating

Department/ / Contract Originator is responsible for completing the Vendor Performance

Form. Reporting of vendor performance is mandated by the Texas Government Code Sec.

20.108 and is required for purchases over $25,000 (with certain exemptions). The Office of

http://www.tsu.edu/about/office-of-the-president/pdf/delegation-of-authority.pdf



Institutional Compliance will submit a copy of the required form to you during the

contracting process (and the form may also be found on TSU Forms). This form is

important so that TSU and other state entities can evaluate vendor performance to reduce

risk in the contract award process.

Please note: The Initiating Department will be contacted directly during the review, if any

questions or issues arise. This process should take approximately 5 - 10 days.



BID REQUIREMENTS Procurement of Goods

Dollar Range Procedure

$0.00 $5,000.00 Bids not required. Use a Historically Underutilized Business (HUB),

whenever possible.

$5,000.01 $25,000.00 Requires a minimum of three informal quotes, one of which must be HUB

(one ethnic minority and/or one woman-owned business).

$25,000.01 +

Purchasing Office solicits written bids from vendors on the

Centralized Master Bidders List. All bids may be posted to the State of Texas

Electronic Business Daily website http://www.tfc.state.tx.us/tools/esbd

and TSU’s website.

Procurement of Other Professional or Consultant Services

Professional Services are not advertised based on dollars, rather based on qualifications.

Dollar Range Procedure

$0.00 $25,000.00 Solicitations not required. Use a Historically Underutilized Business (HUB),

whenever possible.

$25,000.01 +

Purchasing Office solicits written Request for Qualifications for professional

services or Request for Proposals for Consultants from vendors on the

Centralized Master Bidders List. All bids may be posted to the State of Texas

Electronic Business Daily website http://www.tfc.state.tx.us/tools/esbd

and TSU’s website.

A LARGE PURCHASE MAY NOT BE DIVIDED INTO SMALL LOT PURCHASES TO

MEET THE BID LIMITS.

http://www.tfc.state.tx.us/tools/esbd

http://www.tfc.state.tx.us/tools/esbd



NOTE: In instances where no bid is required, every effort should be made to ensure the best

service or goods are obtained and “conflict of interest” and ethical violations are avoided or

controlled.

EXCEPTIONS TO THE BID PROCESS

A. UNIVERSITY PRINTSHOP

Requisitions for Printing Services, regardless of the dollar amount, must go

through the University Print Shop. Letters authorizing outside printing will NOT

be issued unless the University Print Shop has been given the opportunity to

perform the job. If bids are required, the Initiating Department should seek

assistance from the Purchasing Department. The Purchasing Department is

delegated the final authority for determining the ‘best value’ for the University

for goods, materials and supplies.

B. TEXAS MULTIPLE AWARD SCHEDULE (TXMAS) CONTRACTS

Purchases made from the TXMAS Program do not require the University to

competitively bid but does require “best value” quotes. The TXMAS Program

adapts competitively awarded government contracts to the procurement needs

of the State of Texas. The vast majority of TXMAS contracts are adapted from

GSA (General Services Administration) Federal Supply Service contracts. It is

common for a vendor’s TXMAS catalog to be nearly identical to those on the

GSA Schedule.

How to Purchase from Existing TXMAS Contracts

Search the TXMAS Contracts Web Page for the required product or

service: http://comptroller.texas.gov/procurement/prog/txmas/

It is recommended that the University obtain a price quote from as many

(minimum three providers) TXMAS vendors as necessary to provide best

value to the State (please document all price quotes). Attach quotes with

TXMAS contract number to requisition for processing.

C. TEXAS DEPARTMENT OF INFORMATION RESOURCES (DIR)

Save time and money on technology purchasing. DIR has done all the

procurement work for you, with more than 750 contracts in place - all

competitively bid per Texas state requirements.



How to Purchase from Existing DIR Contracts

Search the DIR Contracts Web Page for the required product or service:

http://dir.texas.gov/

It is recommended that the employee obtain a price quote from as many

DIR vendors as necessary to provide best value to the State (please

document all price quotes). Attach quotes with DIR contract number to

requisition for processing.

Approval by the Chief Information Officer is required prior to submitting

requests to Procurement Services.

DIR Quoting Thresholds

$50,000 or less, only one (1) quote is required

$50,000.01 - $150,000, three (3) quotes are required

$150,000.01 to $999,999.99, six (6) quotes are required

$1,000,000 and higher, quotes are prohibited and a solicitation must be

issued.

D. COOPERATIVE PURCHASES AND INTER-LOCAL AGREEMENTS

All local government entities are authorized by the Inter-local Cooperation Act,

Chapter 791 of the Texas Government Code to participate in Inter-local

Agreements. The university’s use of these agreements may expedite the process

of selecting qualified vendors to provide commodities, goods and services at

competitive prices. These agreements will provide contracts for commodities to

the University that has already fulfilled the procurement solicitations

requirements required by state statutes. Contact Procurement Services for

information regarding university approved cooperatives.



Yes

No

“TSYOU” PROCESS

Yes

No

No

Yes

Agreement

with no

monetary

value.

Purchase of

Goods/Svc or

Agreement?

Procurement of

Goods/Services?

OIT Good

or Svc?

Get OIT

Approval

Procurement

Services

Office of

Compliance

Division of

Finance or

Research

Financial

Services

Funds

Available

?

Initiating

Department

OGC

Initiating

Department

Signed Copy

OGC Email / Memo to

OGC

Funds

Obtained?

Process Ends.

Executed Not Executed

Upon execution of the agreement / contract (when both parties have signed the agreement), the respective Senior Vice President signing the agreement shall forward a copy (preferably electronically) of the executed agreement to the Office of General Counsel and the original contract should be forward to the Initiating Department / Contract Originator The original contract should be retained according to the University’s Record Management Policy.

Sr. Official

Original Contract



CONTRACT MANAGEMENT

Responsibilities of Contract Administrators:

Texas Southern University Contract Manager has the authority to:

• sign controlled correspondence;

• serve as the day-to-day point-of-contact;

• coordinate quality control reviews;

• approve invoices;

• coordinate meetings with respondent;

• investigate complaints;

• receive requests for substitutions or changes in goods or services awarded under the

contract;

• initiate contract amendments; and discuss pricing changes

The Respondent’s Contract Manager

Respondent must identify its Contract Administrator to Texas Southern University in writing

within 10 days of the issuance of the purchase order. Respondent should document all

subsequent changes of Respondent’s Contract Manager through controlled correspondence.

Respondent’s Contract Manager must be someone with the authority to:

• make decisions regarding the deliverables required by the contract;

• sign controlled correspondence;

• serve as the day-to-day point-of-contact;

• coordinate quality control reviews;

• coordinate meetings with the Texas Southern University and

• investigate complaints.

Records Retention

Respondent must retain all financial records, supporting documents, statistical records, and any

other records or books relating to the performances called for in the contract. Respondent must

retain these records for a period of seven years after the expiration of the contract, or until Texas

Southern University or the State Auditor’s Office (SAO) is satisfied that all audit and litigation

matters are resolved, whichever period is longer. Respondent will grant access to all books,

records, and documents pertinent to the Contract to Texas Southern University, SAO, and any

federal governmental entity that has authority to review records due to federal funds being

spent under the contract.

Vendor Performance Before and After Award

In accordance with Texas Government Code §§ 2155.074 and 2262.055, vendor performance

may be used as a disqualification factor in the award of any contract resulting from this

solicitation.



Texas Southern University may conduct reference checks with other entities regarding past

performance. In addition to evaluating performance through the Vendor Performance Tracking

System (VPTS) as authorized by 34 Texas Administrative Code § 20.108, Texas Southern

University may examine other sources of Respondent performance including notices of

termination, cure notices, assessments of liquidated damages, litigation, audit reports, and non-

renewals of contracts. These sources of respondent performance may include any governmental

entity, whether an agency or political subdivision of the State of Texas, another state, or the

federal government. Further, Texas Southern University may initiate these examinations of

respondent’s performance based upon media reports. Any investigations are at TSU’s sole

discretion, and any negative findings, as determined by Texas Southern University, may result

in a non-award to Respondent. Information pertaining to VPTS is located on CPA’s website at:

http://www.window.texas.gov/procurement/prog/vendor_performance/ .

Additionally, per Texas Government Code § 2155.089, Texas Southern University will review

successful

Respondent’s performance under a contract resulting from this solicitation after the contract is

completed or otherwise terminated. These reviews and any resulting classification grades will

be posted on the Vendor Performance Tracking System as noted in Texas Government Code §

2262.055.

State of Texas Debarment

In the event that respondent has repeated unfavorable VPTS performance reviews, repeated

unfavorable VPTS grading classifications, or has more than two contract terminations within

the preceding three years for unsatisfactory performance, the Texas Comptroller of Public

Accounts may bar a vendor from participating in state contracts for a period commensurate

with the seriousness of respondent’s action and the damage to the state’s interests.

http://www.window.texas.gov/procurement/prog/vendor_performance/



CONTRACT CHECKLIST

Information which must be included in the contract: Affirmative

1 Legal names of the parties.

2 Term of the contract, including a specific beginning and end date.

3 Purpose of the contract.

4 What is expected of each party, including any time requirement for

performance?

5 Remuneration to be paid or consideration to be offered.

6 Both parties have provided something of value (i.e., cash payment for some

product/service).

7

Payment schedule and any requirements for payment, including some

manner for determining when payment is to be made (i.e., specific dates

when payment is to be made, payment to be made within thirty days of

receipt of invoice, etc.)

8 Signature lines for execution by appropriate parties.

Information which should be included, if applicable: Affirmative

1 Any other conditions considered essential in order for the contract to occur.

2 Additional rights and/or responsibilities of each party.



3 Requirement of receipts if payment for expenses is being made, statement of

any requirements for reimbursement and a limitation on payment.

4

If one party is collecting money and paying a portion to the other party, the

amount or percentage should be clear and the contract should always

include the right to review and audit the records of the party collecting

money.

5 Clear identification of the party who will be responsible for any costs

associated with the contract.

6 Limitations of damages in case of TSU default, preferably cap damages at the

contract price.

7

If the University is making a payment, contract should state that amount to

be paid is contingent on being approved and money being allocated after

each legislative session.

8 Statement that payment cannot be made if the individual owes money as a

child support obligor, if the University is making payment to an individual.

9 University should be named as an insured if the other party is providing

insurance.

10 Clear statement of which party will be held responsible if there is loss or

damage under the contract.

11 Statement of what will happen to contract if another event or contract this

contract is contingent on does not occur.

12 Attachment of any underlying contract a party is required to follow the

terms or conditions of.



13 Statement of incorporation of any RFP and the other party's response to that

RFP that the contract is based on.

14 Clear specification of the rights of the parties to any intellectual property at

issue.

15

Specification of ownership of any equipment or asset after the contract is

ended when equipment or anything of value is to be developed or purchased

as part of the contract.

16 Statement of conditions which would result if contract is terminated early;

inclusion of cancellation clause (30 days written notice, etc.)

17 Specification of anything that must take place when the contract terminates

(i.e., return of equipment, etc.).

18 Funds approved for this contract are approved for the current fiscal year

only.

19

Contracts are not subject to automatic renewals, unless the terms are

specified and the Initiating Department has a reliable system in place that

will provide notice to the responsible TSU staff member that a decision has

to be made regarding contract termination prior to the expiration of the

specified option period.

Applicable legal provisions: Affirmative

1 Force Majeure (events out of the control of either party that would result in a

delay in the performance contract for which neither party would be liable).

2 Entirety clause (written contract includes all of the agreements between

parties).



3 Assignment provisions (parties do not have right to assign their rights and

responsibilities without the other party's approval).

4

Enforceability clause (if party does not enforce its rights under the contract at

a particular time, this will not constitute a waiver of its right to enforce the

terms and conditions of the contract at any later date).

5 Independent contractor clause (describes legal relationship between parties).

6 Notice clauses (specifies manner in which notice should be given under the

contract, including person and address where notice should be received).

7 Applicable state law (Texas should be designated for performance or

applicable law).

8 Venue (Harris County, TX) (Texas Education Code §106.38).

9. Non-Discrimination.

Language & Provisions to strike: Affirmative

1 Vague and/or indefinite terminology (e.g., party is supposed to do

something "promptly" or no end date).

2

Indemnity and hold harmless clauses (if vendor/contractor absolutely refuses

to delete provision, can leave clause in with the following added qualifying

language: "To the extent allowed by the laws of the State of Texas.").

3 Attorney's fees (can be left in the contract if necessary by adding "to the

extent allowed by the laws of the State of Texas.")



4 Arbitration clauses (only state approved ADR paragraph).

5 Confidentiality provisions or agreements.

6 Change "warrant" to "agrees".

7 Agreement for state entity to purchase or provide liability insurance.

8 Agreement for state entity to enter into a partnership or agree to be the agent

for another party, vice versa.

9 Statement of assumption of personal liability on the part of whoever signs

the contract.

10 Exclusivity clauses (unless exclusivity is desired, then keep term short).



PURCHASING/PROCUREMENT SERVICES

CONSULTING CONTRACT CHECKLIST

$14,

000

or

less

$14,

001

to $

24,9

99

$25,

000

to $

50,0

00

$100

,001

an

d

ab

ov

e

1 VENDOR MAINTENANCE (W-9),

ETC. √ √ √ √

2 CONTRACT (DRAFT) √ √ √ √

3 PROCUREMENT APPROVAL &

PROCESSING √ √

4 NOTIFICATION OF INTENT TO

LBB & GOVERNOR’S OFFICE √ √

5 SOLICITATION OF CONSULTING

CONTRACT IN TEXAS REGISTER √ √

6 NOTIFICATION OF AWARD TO

LBB AND GOVERNOR’S OFFICE √ √ √

7 TSU PRESIDENT OR DELEGATE’S

APPROVAL √

8 TSU BOARD OF REGENTS’

APPROVAL √

NOTE: The information contained in the chart above was provided by Procurement Services. All

inquiries should be directed to that department.

Contracts $14,000 or greater must be reported to the Legislative Budget Board and/or

the Governor’s Office per Government Code 2254.



A P P E N D I X



A. FORMS AND STANDARD AGREEMENTS

The following are standard contract forms and checklists here at TSU. Please note that

any modifications of these standard forms will require the approval of the Office of

General Counsel. For convenience, all forms can be found on the University’s website

under the TSU Forms Library.

CONTRACT USE REQUIRED SIGNATURES OWNERSHIP

AFFILIATION AGREEMENTS

Affiliation Agreement (Foreign

University)

Form # - TSUOGC-S-1210-001

Use when University is

establishing exchange programs

with a foreign university and

needs to establish an international

understanding.

President or Provost

Foreign University

Representative.

Form shall be

submitted to the

Office of General

Counsel.

Agreement of Cooperation

(Partner Institution)


Use to establish a program of

exchange and collaborations in

areas of interests and benefit with

partner institutions.


Partner University

Representative.

Form shall be

submitted to the

Office of General

Counsel.

College of Pharmacy Affiliation

Agreement


Used by the College of Pharmacy

and Health Sciences to provide

students with educational

experience by utilizing

appropriate facilities and

personnel of third parties


Dean College of Pharmacy

and Health Sciences

Facility Owner

Student

Form shall be

submitted to the

Office of General

Counsel.

Education Experience

Affiliation Agreement


Used to establish program to

provide students with educational



personnel of third parties.


Facility Owner

Form shall be

submitted to the

Office of General

Counsel.

Education Experience Program

Agreement

Form TSUOGC-S-1210-043

Used to establish program to

provide students with educational



personnel of third parties.


Facility Owner

Form shall be

submitted to the

Office of General

Counsel.

http://www.tsu.edu/About/Administration/forms/default.php



Memorandum of

Understanding (Academic

Programs)


Used to establish a program

between Universities.


Dean of respective

school/college

Other University

Representative.

Form shall be

submitted to the

Office of General

Counsel.

ATHLETIC AGREEMENTS

Athletic Agreement


Used to establish particulars of

athletic sporting events such as

the number of complimentary

tickets, assignment of officials, etc.

CFO or President (TSU)

Athletics Director (TSU and

other team)

Coaches (TSU and other

team)

Form shall be

submitted to the

Office of General

Counsel.

Athletic Director Employment

Agreement


Used to establish the specific

duties related to the Athletic

Director position

President

Athletic Director

Form shall be

submitted to the

Office of General

Counsel.

Head Coach Employment

Agreement

Form TSUOGC-S-1210-034

Used to establish the specific

duties related to the Head

Coaching positions

President

Head Coach

Form shall be

submitted to the

Office of General

Counsel.

FACILITIES LICENSING & CONSTRUCTION

Facility License Agreement


Used when licensing TSU facility. Special Events Personnel.

University Official w/

delegated Authority

Licensee

Form shall be

submitted to the

Office of General

Counsel.

Job Order Contractor (Master

Agreement)

Form# -TSUOGC-S-0710-035

Use when contracting a large

number of repair, maintenance

and construction projects with a

single, competitively bid contract.

University Official

w/Delegated Authority

Contractor

Form shall be

submitted to the

Office of General

Counsel.

INTELLECTUAL PROPERTY

Authorization for Use of

Image, Voice, Performance,

Artwork or Likeness


Used to grant the university

authority to use an individual’s

image, voice, performance,

artwork or likeness.

Individual’s whose image,

voice, performance, artwork

or likeness we desire to use.

If individual is a minor,

parent or guardian signature

is required as well.

Form shall be

submitted to the

Office of General

Counsel.



Copyright Assignment/Release

Form

Form # TSUOGC-S-0910-036

Used to confirm an employee has

entire and exclusive copyrights to

certain articles/publications to

release use to TSU.

Author and/or Co-author Form shall be

submitted to the

Office of General

Counsel.

Intellectual Property Use

Permission Form


Used to grant authority to use our

logos, marks, and other

intellectual property.

Signature of Applicant

Signature of Office of

University Relations

Office of General Counsel

Form shall be

submitted to the

Office of General

Counsel.

INTERAGENCY COOPERATION AGREEMENTS

Interagency Agreement (TSU

Performing Svc).


Used when the university is

performing a service for another

State of Texas agency or

university.

President

Representative from other

Texas agency or university.

Form shall be

submitted to the

Office of General

Counsel.

Interagency Agreement (TSU

Receiving Services)


Used when the university is

performing a service for another

State of Texas agency or

university.

President

Representative from other

Texas agency or university.

Form shall be

submitted to the

Office of General

Counsel.

OTHER CONTRACT COMPLIANCE FORMS

Contract Closeout


Used to advise the Office of

General Counsel when a contract

is terminated or completed.

Initiating Department Form shall be

submitted to the

Office of General

Counsel.

HIPPA Business Associate

Agreement


Used when the contractor will be

provided access to private health

information.


Delegated Authority

Contractor / Provider

Form shall be

submitted to the

Office of General

Counsel.

Interlocal Cooperation Contract


Used to authorize local

governments to contract with one

another and with state agencies

President

Agency Representative

Form shall be

submitted to the

Office of General

Counsel.

OIT Approval Form for IT

Purchases


Used to authorize IT hardware,

software, license subscriptions,

and license renewals

Chief Information Officer

Contract Manager

Form shall be

submitted to the

Office of General

Counsel and

Procurement Svcs.



Volunteer Waiver

Form # TSUOGC-S-1210-031

Used to acknowledge volunteer

services rendered to the

University

Volunteer

Parent or Legal Guardian (if

volunteer is under the age of

18)

Form shall be

submitted to the

Office of General

Counsel

PERSONAL TRAINER (FITNESS AND WELLNESS CENTER)

Personal Training


Used when personal trainer is

provider at the Texas Southern

University Recreation Center

Applicant/Trainee Form shall be

submitted to the

University

Recreational

Center.

POLICE SERVICES

Police Services


Used to for the purpose of

retaining third-party police

security services for the

University.

Chief of Police

Third Party Officer

Recommender

Form shall be

submitted to the

University Police

Department.

PROCUREMENT FORMS AND AGREEMENTS

Professional / Consulting

Services Agreement


Used to document consulting,

professional, and other services.


Delegated Authority

Contractor/Vendor

Form shall be

submitted to the

Office of

Procurement

Services along

with Contract

Coversheet.

Contract Amendment/Renewal

Form


Used to document substantive

revision or extension date of a

fully executed agreement.


Delegated Authority

Contractor/Vendor

Form shall be

submitted to the

Office of General

Counsel with any

amendments to

Standard

Purchasing

Agreements.



Contract Compliance

Coversheet


Used to summarize contract

information and facilitate the TSU

contract process.

Initiating Department

Administrator with Delegated

Authority

Procurement Services

Compliance

Fiscal Affairs

Form shall be

submitted to the

Office of

Procurement

Services along

with other contract

documents for all

contracts for good

/ services.

Recommendation for Award

Form


Used to document purchases

procurement method used to

obtain the award for contractor.



Delegated Authority

Executive Director of


Form shall be

submitted to the

Office of

Procurement

Services along

with Contract

Coversheet.

Sole Source


Used to document purchases that

provides for proprietary (sole

source) acquisition of goods or

services valued at a total amount

of $5,000or more from state or

local funds.



Delegated Authority

Executive Director of


Form shall be

submitted to the

Office of

Procurement

Services along

with Contract

Coversheet.

Standard Amendment for

Goods and Services over $5,000


Used to document changes to

existing contracts for goods and

services over $5000. Standard

agreement will not need a review

by General Counsel.


Delegated Authority

Contractor/Vendor

Form shall be

submitted to the

Office of

Procurement

Services along

with Contract

Coversheet.

Standard Contract Addendum


Used to comply with State rules

and provisions

University Official

w/Delegated Authority

Contractor

Form shall be

submitted to the

Office of General

Counsel

Standard Purchasing

Agreement for Goods and

Services Under $5000


Used to document purchase

agreements / contracts for goods

and services under $5000.

Standard agreement will need no

review by General Counsel.


Delegated Authority

Contractor/Vendor

Form shall be

submitted to the

Office of

Procurement

Services along

with Contract

Coversheet



Vendor Agreement


Used when there is no other

existing form/contract or a

contract from the vendor when

projects are bid. Used to integrate

the bid documents into a contract.


Delegated Authority

Contractor/Vendor

Form shall be

submitted to the

Office of General

Counsel along

with Purchase

Order, all Bid

Documents and

Compliance

Coversheet

SPEAKERS/PERFORMERS/PROMOTERS

Performer Agreement

Form #TSUOGC-S-0910-0040

Used when contracting services of

a performer for an event at the

University

Performer or Designated

Representative


Delegated Authority

Form shall be

submitted to the

Office of General

Counsel

Promoter Agreement to Present

Event On Campus


Used when allowing promoter use

the University’s facilities


Delegated Authority

Promoter or Designate

Representative

Form shall be

submitted to the

Office of General

Counsel.

Speaker Agreement


Used when contracting a speaker

for University events


Delegated Authority

Speaker or Designated

Representative

Form shall be

submitted to the

Office of General

Counsel.

SPONSORED PROGRAMS

Memorandum of Agreement

for Sponsored Programs


Used to document agreement

between sponsor and TSU that

will further the instructional and

research objects of TSU.

Provost

Principle Investigator

Sponsor

Form shall be

submitted to the

Office of Research.

STANDARD RELEASES AND HEALTH RELATED FORMS

Bacterial Meningitis

Immunization Record

Form# -TSUOGC-S-1210-032

Used to document that student

residing in University housing has

necessary immunization on

record.

Student (over 18 yrs)

Parent or Legal Guardian of

Minor Student (under 18 yrs)

University Health

Center

Confidential Authorization to

Release Medical Records


Used to obtain authorization to

release medical records.

Student Signature

Signature of Parent – If under

18.

Form shall be

submitted to the

Office of Student

Health Center.

Reference Request & FERPA Used to obtain authorization to

release personal information for

references.

Student’s Signature Form shall reside

with individual /

department that

http://www.utexas.edu/business/vp/contracts_agreements/forms/Hotel_Agrmnt.doc



Release


submitted

reference request.

Release & Indemnification

Agreement – Minor Students


Used to obtain authorization from

minor students for trips and

activities.

Parent’s / Guardian’s

Signature

Witness

Form shall reside

with individual /

department

sponsoring the

activity.

Release and Indemnification

Agreement - Adults (Faculty)



adults (Faculty) for trips and

activities.

Adult’s Signature

Witness.

Form shall reside

with individual /

department

sponsoring the

activity.

Release and Indemnification

Agreement – Adult Students



adult students for trips and

activities.

Student’s Signature

Witness.

Form shall reside

with individual /

department

sponsoring the

activity.

VISITING FACULTY

Visiting Faculty (TSU Faculty

Visits Elsewhere)


Used when TSU faculty are

visiting and teaching at another

university or college.

Provost or Dean

Other University

Representative.

Form shall reside

with the respective

Dean’s office and

the Provost’s

office.

Visiting Faculty (Visiting

Faculty comes to TSU)


Used when faculty from another

university or college are visiting

and teaching a course at Texas

Southern University.

Provost or Dean

Other University

Representative.

Form shall reside

with the respective

Dean’s office and

the Provost’s

office.

http://www.utexas.edu/business/vp/contracts_agreements/forms/IAC_UT_Performs.doc



B. PROFESSIONAL / CONSULTING SERVICES CONTRACTS

PROCESS DESCRIPTIONS

Overview

Consulting Services is defined as the service of studying or advising an existing or

proposed Texas Southern University (TSU) operation, department or project under a

contract that does not involve the traditional relationship of employer and employee in

accordance with Texas Government Code 2254.021(1). Professional Services is defined as

those services considered as professional services in accordance with Texas

Government Code 2254.002, which include: Accounting, Architecture, Optometry,

Medicine, Land Surveying, and Professional Engineering Services. Based on the

guidelines that were published by the Governor’s Budget, Planning, and Policy

Division, these procedures are not applicable to certain professional services within the

previously mentioned professions listed above.

Services that are provided by professionals outside the scope of their profession are not

considered professional services and are not exempt from the required procedures.

Furthermore, if a contract involves both consulting and other services, the procedures

described below apply if the primary objective is the acquisition of consulting.

Texas Southern University requires that all contracts for consulting services be awarded

in accordance with applicable laws, rules, regulations, and policies. Those involved in

the procurement process must also perform their responsibilities in a fiscally prudent

and ethical manner. The Executive Director for Procurement Services is responsible for

ensuring that all consulting services solicitations, contracts, renewals, amendments, and

extensions are processed through the Purchasing Department. The Office of

Institutional Compliance facilitates that all personnel who procure consulting services

contracts receive the required levels of training and certification.

Professional / Consulting Services Contracts

All proposals and contracts for consulting services are required to be submitted to the

Executive Director for Procurement Services via a Banner Requisition. Upon receipt of

the requisition(s), the Executive Director for Procurement Services determines if a



Consultant is necessary. Consultants are typically used by the University if: (1) There is

a substantial need for the consulting services; and (2) The services cannot be performed

with University personnel and consulting services cannot be obtained through a

contract with a state government entity. Once it is determined that a consultant is

needed, the Executive Director for Procurement Services determines what additional

documentation is needed such as the due diligence report, the fact finding posting, the

solicitation and contract documents.

The Executive Director of Procurement Services then determines if the individual

performing the consulting services has been employed by the University or other State

agency. A proposed Consultant who was previously employed by TSU or other State

agency during the preceding two (2) years is eligible for appropriated funding, but

must meet disclosure requirements.

No proposed Consultant may receive special consideration and/or favoritism. If a

Consultant is hired and paid to assist the University in developing the procurement

solicitation or the specifications for the procurement solicitation for a contract, then that

Consultant may not be awarded the contract for which the solicitation and the

specifications are being developed.

Major Professional / Consulting Services Contracts

Major Consulting Services Contracts is defined as a consulting services contract for

which it is reasonably foreseeable that the value of the contract will exceed $25,000 in

accordance with Texas Government Code 2254.021(2). In addition to all consulting

contracts, the following procedures are applicable to all major consulting services

contracts.

The requesting department or office must first obtain the “finding of fact” from the Vice

President (VP) of Finance/Chief Financial Officer (CFO), or Provost and must be

completed prior to the signing of the actual contract. The “finding of fact” is

information that provides the basis for determining that the consulting services being

procured are necessary and required. Failure to provide the requisite “finding of fact”

automatically makes the consulting contract void. If the finding of fact is issued by the

VP of Finance/CFO or Provost, the finding and an explanation of the finding must be



included in the invitation that is required to be published in the Texas Registrar. The

University is required to submit to the Office of the Board of Regents all notices

required by applicable law, rule, or regulation to be filed with the Texas Secretary of

State for publication in the Texas Registrar.

To obtain approval of the major consulting services contract from the Vice President of

Finance / CFO or Provost, the requesting department must complete the appropriate

approval request forms (Form CC2-2010 and Consultant Contract Notification Form)

along with a copy of the finding of fact issued by the Vice President of Finance/CFO or

Provost. Once approved by the VP of Finance / CFO or Provost, the requesting

department or office submits the notice of intent and the finding of fact to Procurement

Services along with the proposed contract document. The Office of the Board of

Regents, through Procurement Services, will submit to the Legislative Budget Board

and the Governor’s Office of Budget and Planning the required documents along with

the solicitation. The solicitation is required to be published in the Texas Registrar. If a

consulting services contract is anticipated to have a value of $100,000 or greater,

compliance with the State of Texas Historically Underutilized Business (HUB) Program

is required.

Emergency Professional / Consulting Services

Emergency Consulting Services is defined as an unforeseen emergency situation that

suddenly and unexpectedly causes the University to require the services of a Consultant

(Ex., issuance of a court order, an actual of imminent natural disaster, new state or

federal legislation). An emergency is not considered to be unforeseen if the University

was negligent in the occurrence of the emergency. Procurement of consulting services to

address an unforeseen emergency is allowed with a limited waiver from the Governor’s

Office in accordance with the Governor’s rules as stated in Texas Government Code

2254.025.

Renewals, Amendments, & Extensions of Professional / Consulting Services Contracts

All proposed renewals, amendments, and extensions of all consulting services contracts

must be submitted to the Executive Director of Procurement Services via a Banner



Requisition. Procedures described under the “Major Consulting Services Contracts”

section listed above should be followed if:

1. The University proposes to renew, amend, or extend a major consulting services

contract and the renewal, amendment, or extension has a reasonably foreseeable

value of more than $25,000, or

2. The original consulting services contract was not originally a major consulting

services contract but the proposed renewal, amendment, or extension together

have a reasonably foreseeable value of more than $25,000.

Board of Regents’ Approval

Board approval of a consulting services contract is required if the contract meets one (or

more) of the following criteria:

1. Has a cost or value of more than $100,000 in a fiscal year.

2. Is with a foreign government or agency thereof.

3. Is with the President, a former President, a Vice President, or the Counsel and

Secretary to the Board or Director of Audits.

4. Is identified by an Executive Officer or the TSU President as a contract of such

significance as to require Board approval.



QUICK REFERENCE

1) Initiating Department (Contract Administrator):

Contact the Office of Institutional Compliance for answers regarding the

process.

Evaluate the solicitations and recommend an award(+25K).

Construct the contract document.

Prepare the Compliance Cover Sheet and forward it to Purchasing.

Negotiate with vendor.

Prepare the final contract document and forward to the OGC.

Prepare Agenda Item Checklist (+100K).

Obtain the signatures of the vendor and then the appropriate SVP.

Keep the original contract and forward a copy to the OGC.

Include the contract number in the requisition.

Complete the Vendor Performance Form for purchases over $25,000.

2) Procurement Services:

Notify the LBB and the Governor’s office of TSU’s intent to contract

(+25K).

Post RFP/RFQ in the Texas Register and the Electronic State Business

Daily (+25K).

Prepare the vendor responses for evaluation by the Initiating Department

(+25K).

Notify vendors of award (+25K).

Introduce standard contract document to Initiating Department.

Review the Compliance Cover Sheet/Contract and forward to the

Compliance Office.

3) The Office of Institutional Compliance:

Provide guidance to all users of the contract administration process.

Conduct the due diligence process for proposals and provide results to the

Purchasing Department/Initiating Department.

Review Compliance Cover Sheet/Contract and forward to CFO.



After notification of executed contract, the OIC will notify LBB of

contracts (+14K) and record details of contract.

4) Chief Financial Officer

Review contract for sufficient funding and forward to the General

Counsel.

5) The Office of General Counsel:

Work with the Initiating Department to construct a viable contract.

Review the contract for legal form and sufficiency.

Assigns a contract number and forwards document to Initiating

Department for negotiation.

Review and approve finalized draft of the contract.

Forward to Initiating Dept. for execution by vendor and VP.

Record date contract sent to Initiating Department.

Contact Initiating Department for executed contract.

Maintain a copy of executed contract and forward a copy to the Office of

Institutional Compliance.

6) University Official with Delegated Authority

Review and sign the original contract after the vendor has signed.

Forward a copy of the executive contract to the OGC and the original to

the Initiating Department / Contract Originator.



CONTRACT ADMINISTRATION CONTACTS

Mr. Charles Henry………………………………………...Executive Director – Academic Affairs

Mr. Andrew C. Hughey……………………………………………………………… General Counsel

Ms. Yolanda Nimmer-Williams………………………..………Director – Institutional Compliance

Ms. Ashlee McClelland....................................................................Director – A&F Business Services

Mr. Greg Williams……………………………………...Executive Director – Procurement Services

CONTRACT ADMINISTRATION MANUAL - Texas...

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